1. User Guide
  2. Business Rules Administration
  3. Application Specific Rules
  4. Break Identification
  5. Break Identification Processes
  6. Change in Attributes Break

5.3.10.2.3 Change in Attributes Break

For Change in Attributes Break, the engine compares the current period records with the prior period records to determine if any changes are made to critical attributes (other than balances). If any of the critical attributes have changed then it qualifies as a break event.

The Break Identification Process uses Identity Code to determine which record is current and which is prior. It is assumed the Prior record Identity Code will be < Current Period.

The following key attributes are compared when analyzing data for Change in Attributes Break:

  • ADJUSTABLE_TYPE_CD
  • AMRT_TYPE_CD
  • COMPOUND_BASIS_CD
  • CUR_NET_RATE
  • MATURITY_DATE
  • NEG_AMRT_AMT
  • NEG_AMRT_EQ_DATE
  • NEG_AMRT_EQ_FREQ
  • NEG_AMRT_EQ_MULT
  • NEG_AMRT_LIMIT
  • INT_PMT_FREQ
  • INT_PMT_FREQ_MULT
  • REPRICE_FREQ
  • REPRICE_FREQ_MULT
  • RESIDUAL_AMOUNT
  • ACCRUAL_BASIS_CD
  • PRIN_PMT_FREQ
  • PRIN_PMT_FREQ_MULT

The list of seeded attributes can be viewed in the FSI_BRK_DETECTION_COLUMN_LIST table. Note that some attributes such as CUR_PAYMENT are not in the seeded list, but are referred to conditionally along with other columns.

If Prior Record Adjustable Type Cd = 0 and Current Record Adjustable Type Cd = 0 and Prior Cur Payment <> Current Cur Payment, then consider a break event.

If you want to consider any change in current payment as a break event, regardless of adjustable type code, then Cur Payment can be appended to the list of seeded values.

If any of these fields are identified as changed while comparing current and prior records, the records are flagged as a break.

For this scenario, the Break Identification Process populates the source and Break Funding Charges instrument tables with the following:

  • BREAKAGE_FLG = 2 (Source – Current record only)
  • BREAKAGE_TYPE_CD = 3
    • If both Partial and Change in Attributes are detected, then BREAKAGE_TYPE_CD = 5
      • BREAKAGE_AMOUNT = CUR_PAR_BAL

Additionally, the FSI_D_BREAK_FUNDING_CHARGES table is populated as follows:

  • Both the prior period record and the current record are copied into the FSI_D_BREAK_FUNDING_CHARGES table. The As of Date for the prior record is changed to the current as of date.
  • BREAKAGE_TYPE_CD = 3

    Note:

    If it is NULL, 0, or 1, the breakage charge calculation will treat as a full break and will not correctly calculate BREAK_FUNDING_AMT_CHG.
  • RECORD_IND = -1 for Prior Record and 1 for Current Record
  • All additional fields are carried forward from the Prior Period Record If prior record's Next_Reprice_Date <= active As_of_Date,
  • Next Interest Payment Date: If Next Interest Payment Date <= AS_OF_DATE then Next Interest Payment Date +Payment Frequency/Multiplier
  • Last Interest Payment Date: If Next Interest Payment Date <= AS_OF_DATE then Next Interest Payment Date
  • Next Principle Payment Date: If Next Principle Payment Date <= AS_OF_DATE then Next Principle Payment Date +Payment Frequency/Multiplier
  • Last Principle Payment Date: If Next Principle Payment Date <= AS_OF_DATE then Next Principle Payment Date
  • Next Reprice Date: If Next Reprice Date <= AS_OF_DATE then Next Reprice Date + Reprice Frequency/Multiplier
  • Last Reprice Date: If Next Reprice Date <= AS_OF_DATE then Next Reprice Date
  • Remaining Number of Payments: If Next Principle Payment Date <= AS_OF_DATE then Remaining Number of Payments -1